Gold Investment: Gold prices are continuously falling, is this the right time to invest? - Newztezz Online


Thursday, April 25, 2024

Gold Investment: Gold prices are continuously falling, is this the right time to invest?

There is a continuous decline in the price of gold on the country's futures market Multi Commodity Exchange. Gold has become cheaper by Rs 3300 from its all-time high. According to experts, gold can become even cheaper. In such a situation, let us know whether this is the right time to invest.

There has been a big decline in gold prices in the last four trading days. On MCX, gold has come down to Rs 70 thousand per 10 grams and its price is falling every day. However, on April 16, gold on MCX had reached close to Rs 74 thousand, which was its all-time high level. The price of silver was also at record level. After the record rise in gold prices, the trend of decline continues. In such a situation, is this the right time to invest, let us know.

What is the condition of gold today?

On April 25, the price of gold and silver on MCX has declined even today. Gold on MCX opened with a fall of Rs 290 at Rs 70778 per 10 grams on Thursday and is trading at Rs 70760 per 10 grams till 9.35 am. During this period the price of gold also went up to 70630. Whereas silver is trading at Rs 81884 with a fall of Rs 350.

Many central banks are investing in gold

According to market experts, the bullish trend in gold is expected to continue. Gold is getting support from the purchase of gold by central banks. Especially the central banks of Asia and emerging markets are buying gold. Many big brokerage firms also expect the bull run in gold to continue. The brokerage firm believes that weakness in the dollar and fall in yields will support gold. Demand for hedging is also increasing due to increasing economic and geopolitical risks.

Should you invest?

Motilal Oswal has advised investors to include gold in their portfolio. He has said that amidst economic uncertainty and geopolitical tension, gold plays a big role as a safe medium of investment.

Will keep an eye on American figures

According to experts, gold prices are now looking stable. The main reason for this is the US GDP data coming on Thursday and inflation data coming on Friday. So that it can be understood whether the last US Federal Reserve will cut the policy rate in the month of June or not. Pranav Mer, Vice President of Research (Commodity and Currency) at BlinkX and JM Financial Services, says that weak growth in manufacturing and services PMI has given rise to expectations that the US economy may slow down.

Will prices go below Rs 70 thousand?

According to Anuj Gupta, Head of Commodity Currency at HDFAC Securities, the possibility of Fed not cutting rates is creating an environment for decline in gold prices. He said that the price of gold continues to fall. Which can go below Rs 70 thousand also. If this happens then the level of Rs 69500 ​​will become important. If this level also breaks then the price can reach Rs 68,500 to Rs 68,800.

Gold becomes cheaper by Rs 3300 from record level

By the way, gold prices have fallen far below the record level. According to MCX data, the price of gold had reached a life time high of Rs 73,958 on April 12. Today the price of gold reached Rs 70,778. This means that a fall of Rs 3,3327 has been seen in gold in a week.

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